Skip to content

Is a steelmaker sandwich in the works?

The first phase of bidding in Essar Steel Algoma's sales and investment process ends today
2014-04-07 Essar Steel Algoma 003
Essar Steel Algoma is pictured in this file photo. Kenneth Armstrong/SooToday

Talk of Essar Steel Algoma being combined with U.S. Steel Canada continues as the first phase of bidding for the Sault steelmaker draws to a close.

The Globe and Mail reported last night, quoting unnamed sources, that at least three of Essar Steel Algoma’s suitors are also looking at U.S. Steel Canada.

Essar Steel Algoma, which is in bankruptcy protection under the Companies’ Creditors Arrangement Act, began a sale and investment solicitation process in February. It needs to find a buyer or investor before its US $200-million debtor-in-possession financing arrangement expires at the end of August.

The Globe and Mail reports that an Essar Steel Algoma/U.S. Steel Canada combo could pump out more than five million tons of steel a year. 

Today is the deadline in the first phase of the bidding process for Essar Steel Algoma. Purchase or investment bids received by today will be assessed to determine whether they qualify to move on to a second phase of bidding.


What's next?


If you would like to apply to become a Verified reader Verified Commenter, please fill out this form.